BTC-USDT Futures Market Over-Leverage: Insights from CryptoQuant Founder Ki Young Ju

According to COINOTAG on October 17, renowned data analyst Ki Young Ju, founder of CryptoQuant, cautioned that the BTC-USDT futures market is exhibiting signs of over-leverage. By assessing the ratio of open interest in BTC-USDT contracts against the USDT reserves held on major exchanges, a concerning trend has emerged. This analysis includes the USDT supply across the Ethereum and TRON networks, which collectively comprise 97% of USDT’s total market capitalization, making the findings particularly noteworthy. Such a high level of leverage can increase volatility and risk within the crypto trading ecosystem, prompting investors to exercise caution as they navigate the complexities of cryptocurrency investments.